ON Semiconductor Corp. (NASDAQ:ON) Surpasses Q3 Earnings Estimates

• ON Semiconductor Corp. (NASDAQ:ON) reported a Q3 2024 EPS of $0.99, beating estimates but showing a year-over-year decline.
• The company's revenue reached $1.76 billion, indicating strong demand across its business segments.
• Financial ratios such as the P/E and price-to-sales suggest a moderate market valuation of ON's earnings and sales.

ON Semiconductor Corp. (NASDAQ:ON) has demonstrated strong financial performance in its third-quarter 2024 earnings report. The company reported earnings per share (EPS) of $0.99, surpassing the Zacks Consensus Estimate of $0.97. Despite this positive surprise, the EPS is lower than the previous year's $1.39, indicating a year-over-year decline.

The company also reported revenue of approximately $1.76 billion, exceeding the estimated $1.75 billion. This revenue growth highlights robust demand across ON's business segments and end-market products, as highlighted by Zacks Investment Research. Such performance may positively influence the company's share price, especially with an optimistic outlook for future performance.

ON's financial metrics provide further insights into its market valuation. The price-to-earnings (P/E) ratio is approximately 16.01, reflecting how the market values the company's earnings. The price-to-sales ratio is about 3.97, indicating the market value relative to sales. These ratios suggest that investors have a moderate valuation of ON's earnings and sales.

The company's enterprise value to sales ratio stands at around 4.15, and the enterprise value to operating cash flow ratio is approximately 15.87. These figures offer a perspective on how ON's total value compares to its sales and cash flow from operations. The earnings yield of about 6.25% provides insight into the return on investment for shareholders.

ON's financial health is further supported by a debt-to-equity ratio of approximately 0.40, indicating a moderate level of debt relative to equity. The current ratio of around 3.01 suggests strong liquidity, demonstrating the company's ability to cover its short-term liabilities effectively.